CAN SPAINS HOUSING BOOM LAST?
Spain’s boom has been fuelled by its strong residential market, which, like Italy, Ireland and Portugal, was given a huge fillip by the sharp cut in interest rates when it joined the euro. In Spain’s case, demand was further boosted by the second homes market, tourism and immigration. As a result, housing completions rose from 429,000 in 1996 to 718,000 in 2006 and are predicted to rise again in 2007 to 760,000.
